Kingfisher Airlines lenders set to file Sarfaesi claim

Banks expect protracted battle if promoters attempt to block recovery, plan to move debt recovery tribunal as well
The consortium of lenders to Kingfisher Airlines (KFA) will file a claim under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in a day or two. But it seems unlikely banks will be able to recover a meaningful chunk of their dues of R7,000 crore any time soon.
In February, State Bank of India (SBI) deputy MD Shyamal Acharya had said banks held collateral worth R6,500 crore against loans to KFA. This included the Kingfisher brand, limited to the airline, which, according to media reports, was valued at around R4,100 crore by audit firm Grant Thornton India at the time the loan was given.
“Now in case of airlines we have to see; we have not ascertained the value of the brand yet. Since it is not flying now, the value might be much less,” Acharya told FE on Thursday. Acharya also said that the consortium will be filing a case with the debt recovery tribunal (DRT) next week.
“We are looking to see what we can recover quickly but the promoter could adopt delaying tactics,” he said. SBI, the lead lender in the 14-bank consortium, has an exposure of R1,600 crore to the bankrupt airline.
Under Sarfaesi, lenders can take possession of the fixed and current assets of borrower after 60 days of sending notice, while through the DRT, lenders can use judicial powers against the borrowers.

Kingfisher Still Short of Take-Off Clearance Wall Street Journal NEW DELHI--Kingfisher Airlines Ltd. hasn't met all requirements the government is demanding before it can fly again, a civil aviation ministry official said on Friday. Kingfisher's submission to the civil aviation department lacks detail, the senior ... See all stories on this topic »

Kingfisher lenders set to file Sarfaesi claim - The Financial Express Financial Express The consortium of lenders to Kingfisher Airlines (KFA) will file a claim under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in a day or two. But it seems unlikely banks will be able to ... See all stories on this topic »

Kingfisher plc Stock Rating Reaffirmed by Espirito Santo Execution Noble (KGFHY) Mideast Time Kingfisher plc (NASDAQ: KGFHY)'s stock had its “buy” rating restated by analysts at Espirito Santo Execution Noble in a research report issued to clients and investors on Thursday, Stock Ratings Network reports. Several other analysts have also ... See all stories on this topic »

DGCA rejects Kingfisher's revival plan: Report Nagaland Post Beleaguered Kingfisher Airlines' (KFA) dream to fly does not seem to be converting into reality before long. The Directorate General of Civil Aviation (DGCA) has reportedly refused KFA's revival plan which the company had sought last month. A private ... See all stories on this topic »

3 FTSE 100 Shares Going Ex-Dividend Next Week: GlaxoSmithKline plc ... Motley Fool UK It's ex-dividend time for GlaxoSmithKline plc (LON: GSK), Antofagasta plc (LON: ANTO) andKingfisher plc (LON: KGF) next week. If you want to be eligible for a dividend payment, or if you're hoping a share price might drop disproportionately when the ... See all stories on this topic »

'Palamu Tiger Reserve has potential for bird tourism' Times of India Palamu's birds are under the umbrella of Important Bird Conservation Network (IBCN), an affiliated body of Bombay Natural History Society of Mumbai. There are three specimens of Kingfisher birds in this tiger reserve like Kingfisher,Pied, Kingfisher ... See all stories on this topic »

Air India Pilots Captain B K Soni and Capt Ravindra Nath put the lives of 166 passengers on a Bangkok-Delhi flight in danger by taking a 40-minute break

Air India Pilots Captain B K Soni and Capt Ravindra Nath put the lives of 166 passengers on a Bangkok-Delhi flight in danger by taking a 40-minute break 

Two Air India Pilots put the lives of 166 passengers on a Bangkok-Delhi flight in danger by taking a 40-minute break from the cockpit and getting two stewardesses to operate the plane in their absence. Their stunt almost ended in disaster after one of the stewardesses accidentally turned off the auto-pilot, forcing the pilots to rush back to their seats.

The incident took place 33,000 feet in the air on Air India flight AI 133 (an Airbus 321) from Bangkok to Delhi on April 12, which took off from Bangkok on schedule, at 8.55 am.

Thirty minutes later, First Officer Ravindra Nath excused himself from the cockpit for a bathroom break and got airhostess J Bhatt to occupy his seat in his absense. "According to the guidelines it is a standard procedure to ensure the presence of second person in the cockpit so that if the pilot is not able to operate the aircraft for some reason, the other crew member in the cockpit can immediately call for the other pilot. But what actually happened after this made a mockery of air safety," said a a source in Air India, who did not wish to be named.

Minutes after his co-pilot left the cockpit, Captain B K Soni called another stewardess, Kanika Kala, and asked her to take his seat. Captain Soni did not leave the cockpit immediately; instead, he spent a few minutes teaching the two stewardesses how to operate the aircraft.

He left the cockpit after putting the plane on auto-pilot, leaving the stewardesses to operate the flight by themselves for the next 40 minutes while he and his co-pilot took a nap in business class.

Putting an aircraft on auto-pilot does not exempt pilots from remaining in the cockpit; their presence is required to monitor the flight's status and turn off auto-pilot if required. This was illustrated perfectly when Captain Soni and First Officer Nath were forced to rush back to their seats after one of the stewardesses accidentally switched off the auto-pilot, engangering the lives of everyone on board.

"A senior cabin crew member witnessed the entire drama unfold and brought the matter to the notice of the Airline's management. All four were derostered and later suspended for this violation," added the Air India source.

Director General Arun Mishra of the Directorate General of Civil Aviation (DGCA), confirmed that all four employees had been suspended. "Following a safety violation, the airline has already suspended the people in question. We are conducting a inquiry into the matter," Mishra told Mumbai Mirror.

Captain Mohan Ranganathan, member of a government-appointed aviation safety panel, blamed the 'lackadaisical attitude' of the DGCA for the increase in air safety violations. "The DGCA should be held responsible for the increase in such cases as they have failed time and again to effectively enforce safety guidelines," said Ranganathan.

K Swaminathan, deputy general manager (corporate communications), Air India, did not comment on the incident, saying, "Your query has been referred to the concerned department for comment. We will revert to you on receiving their reply."

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Pilot’s Career Guide

Nonfiction » Career Guides » Education
Nonfiction » Career Guides » Transportation

By Shekhar Gupta

Rating: Not yet rated. 

Published: July 13, 2013 

Words: 26,240 (approximate)

Language: English

ISBN: 9781301650040

Short description

International Airline Pilot’s Career Guide Learn Step By Step How to Become an International Airlines Pilot By Shekhar Gupta Niriha Khajanchi 

Extended description

1. Your Aviation Career Starts Here
2. Pilot Training
3. Flight Ratings – SPL, PPL, CPL, ATPL
4. Pilot and Personal Computer
5. Medical Requirements for Pilots
6. Pilot Training – Where to get it.
7. Best Commercial Pilot Training Schools
8. Aviation Crew [Flight, Cabin, Ground]
9. Aircrafts [Single Engine, Multi Engine, Prop, Turbo Prop, Jet]
10. Best Paying Flying Jobs
11. Pilots Interview Questions
12. Aviation Organizations
13. List of Abbreviations
14. Aviation Jargons
15. FAQ

Click her to Order     https://www.smashwords.com/books/view/336260

Lenders have increased pressure on promoters of Kingfisher Airlines by initiating a move to invoke the corporate guarantee provided by United Breweries and the personal guarantee of Dr Vijay Mallya.

Kingfisher Airlines lenders may try ‘wilful defaulter’ tag if guarantee turns dud


Lenders have increased pressure on promoters of Kingfisher Airlines by initiating a move to invoke the corporate guarantee provided by United Breweries and the personal guarantee of Dr Vijay Mallya.

Lenders said that the next move would be to seek an inventory of assets of the guarantor. They have also raised the spectre of labeling the promoters as "wilful defaulters" if they refused to pay despite having the resources. Although lenders have sought to recall their loans KFA and promoters have been continuing to maintain that they are pursuing revival of the airline, including seeking strategic investors. Last week Etihad, the airline once seen as a suitor for Kingfisher, picked up stakes in Jet Airways.

According to disclosures made to Parliament, Vijay Mallya has provided banks with a personal guarantee of Rs 249 crore, while United Breweries gave a corporate guarantee of Rs 1,601 crore. Besides this the next biggest security is the Kingfisher brand which had been valued at Rs 4,111 crore by Grant Thornton.


"One way of recovery against personal guarantee from a recalcitrant promoter is the wilful defaulter list. Putting them on the list does a lot of damage because if they don't pay up all their future entrepreneurships become doubtful," said a banker.

However, experts on banking laws said that it is not easy to classify a borrower a wilful defaulter. "RBI norms require the party to be given a 15-day notice allowing him to make a representation why he should not be called a wilful defaulter. Banks also have to provide him with all supporting evidence to give him a chance to defend himself. He has to make his representation before a committee of the bank and the final decision is taken by another committee including bank chief," said a lawyer representing corporate against banks.

Kingfisher Airlines lenders set to file Sarfaesi claim - The Financial Express Financial Express The consortium of lenders to Kingfisher Airlines (KFA) will file a claim under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in a day or two. But it seems unlikely banks will be able to ... See all stories on this topic »

Kingfisher Airlines lenders may try 'wilful defaulter' tag if guarantee turns dud Times of India Although lenders have sought to recall their loans KFA and promoters have been continuing to maintain that they are pursuing revival of the airline, including seeking strategic investors. Last week Etihad, the airline once seen as a suitor for ... See all stories on this topic »

Kingfisher lenders invoke Mallya's personal guarantees Business Standard Stepping up their drive to recover dues from the ailing Kingfisher Airlines (KFA), lenders to the airline on Thursday invoked personal guarantees issued by Vijay Mallya, the promoter of the airline. According to a senior public sector bank executive ... See all stories on this topic » Business Standard

DGCA rejects Kingfisher's revival plan: Report Nagaland Post Beleaguered Kingfisher Airlines' (KFA) dream to fly does not seem to be converting into reality before long. The Directorate General of Civil Aviation (DGCA) has reportedly refused KFA's revival plan which the company had sought last month. A private ... See all stories on this topic »

DGCA rejects Kinfisher Airlines' revival plan TravelBizMonitor The Directorate General of Civil Aviation (DGCA) has rejected Kingfisher Airlines Ltd's (KFA) revival plan that it had submitted to the aviation regulator this month, as per an NDTV report. Kingfisher had requested renewal of its operating permit with ... See all stories on this topic »

Qatar, Air Arabia interested in Indian airlines Arabian Supply Chain Meanwhile grounded Kingfisher Airlines has also vied for Qatar's investment. Air Arabia is looking at tying up with an Indian partner for investing in a start-up like AirAsia India JV between the Malaysian budget carrier and the Tata Group. "The fight ... See all stories on this topic »

Banks to invoke personal guarantee of Mallya for KFA loans Moneycontrol.com After the sale of pledged shares, lenders have now invoked the guarantees provided by Kingfisher Airlines which consists of a personal guarantee of Vijay Mallya and the corporate guarantee of UB Holdings , reports CNBC-TV18's Gopika Gopakumar. See all stories on this topic »

Show me the money: Banks invoke Mallya's personal guarantees Firstpost The banks, which have already begun selling the pledged shares of United Spirits and Kingfisher Airlines, will now start disposing of the properties of the carrier, including the office spaces in Mumbai and an asset in Goa. Sarfaesi (Securitisation and ... See all stories on this topic »

FM assures to redress KFA staff salary issues: Sources Moneycontrol.com Salary--related issues just don't seem to end at Kingfisher Airlines. The carrier which is struggling hard to take to the skies will have to face the wrath of its employees who have not been paid salaries for around ten months now. According to... See all stories on this topic »